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Continue with GoogleA loan prepayment means paying a lump sum towards your loan principal before it is due. Use the CibilBazaar Loan Prepayment Calculator to see how much interest you can save and how much your loan tenure or EMI can come down when you make a part-payment on a home loan, personal loan, car loan or any other loan repaid in EMIs.
Enter your loan amount, interest rate and tenure, then add the prepayment amount and when you plan to make it. Choose whether you want to keep the same EMI and finish the loan sooner, or keep the same tenure and pay a lower EMI.
You may also find our EMI Calculator and Balance Transfer Calculator useful.
Prepayment (also called part-payment) is an extra payment made on top of your regular EMIs. The full amount goes towards the outstanding principal, so interest is calculated on a smaller balance from the next month onwards.
Outstanding balance after k EMIs = P × (1 + r)^k − EMI × [(1 + r)^k − 1] ÷ r, where P is the loan amount, r is the monthly interest rate and k is the number of EMIs paid. The prepayment is subtracted from this balance, and the loan is re-worked for the remaining amount.
Add the original loan amount, interest rate and tenure.
Enter the lump sum you plan to pay towards the principal.
Select after how many years or months you will prepay.
Enter the prepayment charge your lender applies, if any.
Choose to reduce the tenure or reduce the EMI and compare the results.
The earlier you prepay, the more interest you save, because most of the early EMIs go towards interest.
A larger lump sum cuts the principal faster and saves more interest.
At higher rates, every rupee prepaid saves more interest.
Charges, if any, reduce your net saving. Always subtract them before deciding.
See the exact interest you can save before you part-pay.
Compare both options and pick the one that suits your cash flow.
Decide how best to use a bonus, maturity amount or other surplus.
Save the result as a file or share the link with family or your adviser.
The results are estimates that assume a fixed interest rate for the whole tenure. On a floating-rate loan, a rate change will alter the numbers.
Under RBI rules, lenders generally cannot charge prepayment fees on floating-rate loans to individual borrowers, while fixed-rate loans may carry charges. Check the latest terms with your lender before prepaying.
A loan prepayment is an amount paid towards your loan principal in addition to your regular EMI. It reduces your outstanding balance and the interest charged on it.
Reducing the tenure usually saves more total interest because you keep paying the same EMI. Reducing the EMI gives you more monthly breathing room but saves less interest overall.
The earlier the better. In the first years of a loan, most of each EMI goes towards interest, so prepaying early has the biggest effect on total interest.
It depends on the loan type and lender. Floating-rate loans to individuals generally do not carry prepayment charges as per RBI rules, but fixed-rate loans may. Confirm with your lender.
Part-prepayment lets you reduce the burden while keeping your liquidity. Foreclosure closes the loan entirely. The right choice depends on your surplus funds and other financial goals.
No. It is an estimate for planning. Your lender's statement may differ slightly because of rounding, EMI due dates and applicable charges.
Disclaimer: Prepayment results are estimates provided for informational purposes only and do not constitute financial advice or a loan offer. CibilBazaar is a loan marketplace and is not a bank or NBFC. Please verify the latest information with the relevant bank or NBFC before submitting your application.
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